Principle
Claim reserving should be undertaken with the goal of a consistent, timely and accurate result.
Minimum standards
- Claim reserves* should make financial provision at reported loss levels*without prejudice to coverage based on currently available
information and factual supporting information in the claim file.
- Initial claim reserves* on this basis should be created within 30 days of first receipt of report addressing reserves for straightforward claims* and within 90 days for complex claims*.
- Reserves on open claims should be reviewed and, as appropriate, revalidated at least every 12 months.
- Reserves on open claims should be reassessed within 30 days of receipt of additional information bearing on the reserve.
- Leaders should handle claims so that the followers’ claims agreement service provider receives as soon as practicable the same reserve related information provided to the leader.
- Reserves for major claims* should be validated via an internal peer review process.
Note: Terms with an asterisk are defined within a separate glossary of terms.
View glossary of terms (22KB, pdf)
